FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Yield to Maturity Formula

Fx Copy

LaTeX Copy

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime. Check FAQs

YTM = \frac{CP + (\frac{FV - Price}{Yrs})}{\frac{FV + Price}{2}}

YTM - Yield to Maturity (YTM)?CP - Coupon Payment?FV - Face Value?Price - Price?Yrs - Years to Maturity?

Yield to Maturity Example

With values

With units

Only example

Here is how the Yield to Maturity equation looks like with Values.

Here is how the Yield to Maturity equation looks like with Units.

Here is how the Yield to Maturity equation looks like.

0.0157 = \frac{20 + (\frac{800 - 900}{15})}{\frac{800 + 900}{2}}

0.0157 = \frac{20 + (\frac{800 - 900}{15})}{\frac{800 + 900}{2}}

0.0157 = \frac{20 + (\frac{800 - 900}{15})}{\frac{800 + 900}{2}}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Investment » Category

Bond Yield » fx Yield to Maturity

Yield to Maturity Solution

Follow our step by step solution on how to calculate Yield to Maturity?

FIRST Step Consider the formula

YTM = \frac{CP + (\frac{FV - Price}{Yrs})}{\frac{FV + Price}{2}}

Next Step Substitute values of Variables

∴

YTM = \frac{20 + (\frac{800 - 900}{15})}{\frac{800 + 900}{2}}

Next Step Prepare to Evaluate

∴

YTM = \frac{20 + (\frac{800 - 900}{15})}{\frac{800 + 900}{2}}

Next Step Evaluate

∴

YTM = 0.0156862745098039

LAST Step Rounding Answer

∴

YTM = 0.0157

Yield to Maturity Formula Elements

Variables

Yield to Maturity (YTM)

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.

Symbol: YTM

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Yield to Maturity (YTM)

Coupon Payment

Coupon Payment is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures.

Symbol: CP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Coupon Payment

Face Value

Face Value is the nominal value or dollar value of a security stated by the issuer.

Symbol: FV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Face Value

Price

A Price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services.

Symbol: Price

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Price

Years to Maturity

Years to Maturity are the years required to mature the bond.

Symbol: Yrs

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Years to Maturity

Other formulas in Bond Yield category

Go Current Bond Yield

CBY = \frac{CP}{CBP}

Go Coupon Bond Valuation

CB = C A \cdot (\frac{1 - {(1 + YTM)}^{- n PYr}}{YTM}) + (\frac{P vm}{{(1 + YTM)}^{n PYr}})

Go Bank Discount Yield

BDY = (\frac{D}{FV}) \cdot (\frac{360}{DTM}) \cdot 100

Go Yield to Call for Callable Bond

YTC = (\frac{CP + \frac{C - CBP}{n y}}{\frac{C + CBP}{2}})

How to Evaluate Yield to Maturity?

Yield to Maturity evaluator uses Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2) to evaluate the Yield to Maturity (YTM), Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime. Yield to Maturity (YTM) is denoted by YTM symbol.

How to evaluate Yield to Maturity using this online evaluator? To use this online evaluator for Yield to Maturity, enter Coupon Payment (CP), Face Value (FV), Price (Price) & Years to Maturity (Yrs) and hit the calculate button.

FAQs on Yield to Maturity

What is the formula to find Yield to Maturity?

The formula of Yield to Maturity is expressed as Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2). Here is an example- 0.015686 = (20+((800-900)/15))/((800+900)/2).

How to calculate Yield to Maturity?

With Coupon Payment (CP), Face Value (FV), Price (Price) & Years to Maturity (Yrs) we can find Yield to Maturity using the formula - Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2).

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Yield to Maturity Formula

Yield to Maturity Example

Yield to Maturity Solution

Yield to Maturity Formula Elements

Other formulas in Bond Yield category

How to Evaluate Yield to Maturity?

FAQs on Yield to Maturity

Variable Name